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21 and looking to buy

edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
7 replies 1K views
VestixthekidVestixthekid Forumite
2 Posts
edited 30 November -1 at 1:00AM in Mortgage-Free Wannabe
Hi,

Apologies if there’s an instant recognisable lack of knowledge regarding purchasing property here!

I believe I will be inheriting around 50k and am looking to invest into property, in order to rent it out, as I am still living at home and am not looking to move out just yet.

I have looked at buy to let mortgages but the interest aspect looks a little expensive so I am looking at properties around 20-40k to purchase and then rent out for about 350 a month.

Just looking for some advice really as I would like to do something with the 50k and also gain some experience in doing so.

Cheers

Replies

  • bexster1975bexster1975 Forumite
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    Hi I think your plan is a good one. I'm very envious if you can buy a place for 40k but if you can, why not? Depending on your day job do keep in mind being a landlord isn't always plain sailing.

    Good luck

    Bexster :)
  • beckysheffieldbeckysheffield Forumite
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    I!!!8217;ve heard a buy to let mortgage is quite hard, so better to !!!8220;move in!!!8221; and after a few months (when you!!!8217;ve got a tenant) move out citing whatever !!!!!!!! reason.
  • flashg67flashg67 Forumite
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    Being a landlord isn't a get rich quick scheme, but given my time again, I'd have started earlier and bought more properties.(I'm in my 50s). I'd say look at it as along term investment, looking for capital gains rather than a quick few £££'s in rent
    Do plenty of research on your legal obligations, calculate your return based on a pessimistic view in regards to tax liability, likely repair costs, void periods, buildings insurance etc.
    Look into using an agent - I work full time so use an agent to find tenants, collect rent & manage most repairs.
    Buy the worst property in the best area you can in your budget. Without being snobbish, think about whether you'll accept the type of tenant a £40k house may attract. I paid £50k for one of mine but spent a few months of evening/weekend making it nice, rather than overspending on someone else's ready-refurbed house.
    I really like this page/blog - if you're not offended by some choice language! https://www.propertyinvestmentproject.co.uk
  • beanieloubeanielou Forumite
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    Lucky you if you can buy for 40k.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~**
    MFW. Finally mortgage free February 2021****
    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
  • TropicallyTropically Forumite
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    A 10.5% yearly return on investment seems high for a rental property. Are you sure those numbers are right?
    Mortgage started at £318,000 in June 2016. Original MF - 2041 :eek:
    2nd Property Mortgage at £275,000. Mortgage free: 2049 :eek:
    Total OPs: £29529
  • edinburgheredinburgher Forumite
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    Tropically wrote: »
    A 10.5% yearly return on investment seems high for a rental property. Are you sure those numbers are right?

    OP will not be buying in a prime area. Yields are higher for properties in less affluent districts. That said, there's no maths for mortgage interest, insurance, repairs, fees or void periods and that will eat a chunk of any return.

    I am amazed that someone is considering a BTL when they haven't even bought their own home!
  • Thanks for the info I’m not looking at is a get rich quick and I’m aware it would take years to make a large profit, I was leaning towards purchasing for around 45 and then renting for about 400 a month which would be much better than my inheritance just sitting in a bank account haha! It would also give me some valuable experience I’m sure in property.
    OP will not be buying in a prime area. Yields are higher for properties in less affluent districts. That said, there's no maths for mortgage interest, insurance, repairs, fees or void periods and that will eat a chunk of any return.

    I am amazed that someone is considering a BTL when they haven't even bought their own home!

    Yeah as I said I was looking at BTL but am almost certainly dismissing the idea. Would rather buy outright for less and let it out using an agent if possible.
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